aafaq Islamic Finance given National Scale Ratings of ‘A-/A2' by Islamic International Rating Agency

UAE, May 3, 2015 - aafaq Islamic Finance, a leading provider of Islamic finance products and e-government services in the UAE, has announced that it has been assigned National Scale Ratings of ‘A-/A2’ “Short term/ Long term” (AED) Single A Minus/A Two) by the Islamic International Rating Agency (IIRA). The Agency noted that aafaq remains well-positioned within its niche and gave a ‘Stable’ outlook for the institution’s ratings.

IIRA, the only rating agency that provides capital markets and the banking sector in predominantly Sharia Compliant with a rating spectrum covering all capital instruments and specialty Islamic financial products, said that the Fiduciary Score was assessed in the range of 66‐70.  It added that aafaq’s assets have doubled since 2011, while its earnings have risen almost four times over this period. The agency also noted that aafaq’s robust liquidity profile reflects the granularity and stability in LG deposits placed with it which indicates strong consumer confidence.

The rating agency further commended aafaq for its comprehensive Corporate Governance Manual which effectively guides its corporate practices. The institution’s solid Shariah governance structure was also acknowledged. aafaq was advised to reinforce its capitalization levels further, though, in light of its overall risk profile and the recent growth trends and plans observed in new business.

H. E. Abdul Jaleel Abdul Rahman Al Balouki, Vice Chairman of aafaq Islamic Finance, said: “Aafaq has been fully committed to delivering innovative services and products, exploring opportunities across multiple business sectors, and achieving the highest returns not only for its shareholders but for the community as well. The solid ratings from IIRA affirm our great success in keeping our promises while ensuring sustained growth within a rapidly evolving market.

We thank our strategic partners and our staff for driving us to stay ahead of the competition and enjoy this level of industry leadership and respect.”

The institution is steadily moving towards the full implementation of guidelines within its Corporate Governance Manual as seen in its disclosures in the public domain. IIRA recommends that the manual be streamlined further in line with aafaq’s operations. The agency also noted that the closer attention being given by aafaq towards documenting policies and procedures may possibly evolve further in step with the institution’s growth momentum.